Cable extends gains on the session 0 (0)

<p style=““ class=“text-align-justify“>There wasn’t an immediate trigger as the bids started coming in as European markets opened but after the mostly solid UK labour market report earlier <a target=“_blank“ href=“https://www.forexlive.com/news/uk-january-payrolls-change-102k-vs-28k-prior-20230214/“ target=“_blank“ rel=“follow“>here</a>. The jobs market remains strong but it was the wages data that is really sparking some debate, coming in hot and that could translate to the BOE wanting or needing to do more in terms of policy tightening.</p><p style=““ class=“text-align-justify“>In my view, that doesn’t change much considering how real earnings are massively depressed as pointed out <a target=“_blank“ href=“https://www.forexlive.com/news/uk-pay-growth-may-have-picked-up-again-but-real-earnings-tell-a-different-story-20230214/“ target=“_blank“ rel=“follow“>here</a>. If anything else, it just suggests a feedback loop that raises the risks of stagflation.</p><p style=““ class=“text-align-justify“>In any case, cable is now trading back up to above 1.2200, up 0.6% on the day, but the danger remains ahead of the US CPI data later in the day.</p>

This article was written by Justin Low at www.forexlive.com.

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